Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CFPB Announces Two Actions to Restore Consumers
WASHINGTON (12/27/13)--The Consumer Financial Protection Bureau has announced two new actions intended to restore consumers that the bureau claims have suffered illegal treatment at the hands of financial services providers.
 
Most recently, the CFPB announced an enforcement action with orders requiring three American Express subsidiaries to refund an estimated $85 million to approximately 250,000 customers for illegal card practices.
 
The regulator charges that its action is the result of a multi-part federal investigation which, it claims, found that at "every stage of the consumer experience, from marketing to enrollment to payment to debt collection, American Express violated consumer protection laws."
 
In the other action, the CFPB joined forces with the U.S. Department of Justice to file a joint complaint against National City Bank (NCB) for allegedly "charging higher prices on mortgage loans to African-American and Hispanic borrowers than similarly creditworthy white borrowers between the years 2002 and 2008."
 
The joint action marks the first lawsuit brought in federal court by the CFPB and the DOJ to enforce federal fair lending laws. On Dec. 6, 2012, the CFPB and the DOJ forged a formal agreement meant to bring strong coordination between the two agencies on fair lending enforcement, including the pursuit of joint investigations such as this one.
 
The agencies also filed a proposed order to settle the complaint that requires NCB, through its successor PNC Bank, to pay $35 million in restitution to harmed African-American and Hispanic borrowers.


 
 
 
 
 
 
 
RSS





print
News Now LiveWire
About 1 in 5 #CUs offer credit-building loans,@SchenkMike @CUNA vice president of economics and statistics, told @CreditCardsCom
14 hours ago
RT @CUNA: DDoS attacks shorter, intense, more expensive: @VERISIGN HT @newsnowlivewire http://t.co/QiQKIEjK5v
14 hours ago
RT @CUNA: .@CUNACouncils launches new website. Offering site tours to current members. Check it out! http://t.co/YFJA1tKIxn
14 hours ago
.@Discover to support #ApplePay by fall http://t.co/3wDjkOVU7P HT @Forbes
16 hours ago
.@HUDgov requires investors to delay foreclosure for a year and offers a non-profit only pool sale http://t.co/WYzQrTL3QA
19 hours ago